Question

A list and explanations of the components of Aggregate Supply and what kinds of economic conditions will cause it to rise, along with those that will cause it to fall.

Answer 1

Aggregate Supply means National Income. So its component is consumption and savings . AS=C+S .Basically it is the total money value of the production available in a economy at a time.

Three economic condition determinant or effect the Aggregate Supply

1 Change in labor force .A positive change in labor force increases the AS.

2 Change in input prices. An increase in input prices may leads decrease in AS and vice-versa.

3 Change in Technology , A positive change drag the price down and AS increase .